The United States (US) and India moved closer to a comprehensive trade agreement on Friday, unveiling an interim framework aimed at lowering tariffs, reshaping energy ties and strengthening economic cooperation as both countries seek to realign global supply chains.
In a joint statement, the two governments said the framework reaffirmed their commitment to negotiations toward a broader bilateral trade pact, while acknowledging that further talks were required to finalise the agreement.
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US President Donald Trump earlier announced that Washington would cut tariffs on Indian goods to 18% from 50% in exchange for New Delhi halting purchases of Russian oil and reducing trade barriers. Half of the previous 50% tariff had been imposed as a penalty for India’s imports of Russian crude, which Trump said were supporting Moscow’s war effort in Ukraine. That 25% punitive tariff was rescinded on Friday through an executive order after India agreed to shift oil purchases to the United States and Venezuela.
Watch #TheBreakfastShow with @DishhaBagchi | US India unveil interim trade framework, release joint statement reaffirming ties, broader deal
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The move marks a significant milestone in the partnership, aimed at expanding market access, strengthening supply chains, and delivering concrete outcomes for both economies.#IndiaUSTradeDeal #TradeDiplomacy #GlobalTrade #FortuneIndia pic.twitter.com/OaIGuVihch— Fortune India (@FortuneIndia) February 7, 2026
The interim framework provides new detail, confirming that India will buy $500 billion worth of US goods over five years. These include oil, gas, coking coal, aircraft and aircraft parts, precious metals and technology products such as graphics processing units used in artificial intelligence and data centres.
India also agreed to eliminate or reduce tariffs on all US industrial goods and a broad range of agricultural products, including animal feed, tree nuts, fruits, soybean oil, wine and spirits.
However, the United States will maintain an 18% tariff on most Indian exports, including textiles, apparel, leather goods, footwear, chemicals, plastics, home decor and some machinery. India will receive tariff relief similar to other US allies on aircraft and parts, along with a quota for auto parts subject to lower duties.
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Further negotiations will address pharmaceuticals, non-tariff barriers and regulatory standards. Both sides also agreed to cooperate on export controls and address non-market practices by third countries, underscoring the strategic importance of the deal amid competition with China.